Show your calculations. Explain your work and the assumptions you make in order to do the calculations such as down payment, interest rates, terms, lengths of time and so forth. Write your answers in complete sentences to provide context. It is okay to utilize online tools. A. Find a car online that you would like to buy. Give the year, make, model, and price of the car. Find/ estimate a loan you would qualify for. Auto loans are usually for 60, 66 or 72 months for the term of the loan. Calculate the monthly payment amount, total payments for the life of the loan, and total interest for the life of the loan for each length and make a chart to show the comparisons.
B. Next, suppose you started a savings plan instead of buying the car, depositing the same amount that would have gone to car payments. Check online to estimate an interest rate for the account. Estimate the amount that will be in your savings account by the time you graduate college.